Jeremy Paner Discusses Continued US Restrictions on Cuba as Country Moves to Open its Economy

Highlights

• Cuba announces that nationals living abroad may invest in and own private businesses, however the U.S. trade embargo continues to restrict investment by Cuban Americans.
• Former OFAC official Paner says Cuba’s move is aimed at signaling Washington, not attracting U.S. investors.
• Congressional action or a declared transitional government would be required to ease sanctions.

March 24, 2026

Jeremy Paner discussed Cuba’s move to open its economy to Cuban nationals living abroad – and the U.S. restrictions that remain in place – in an interview with South Florida NPR station WLRN.

The Cuban government announced this week that Cuban nationals living abroad will be permitted to invest in and own private businesses on the island, marking a significant policy shift. However, for much of the Cuban diaspora – particularly in Florida – the longstanding U.S. trade embargo creates substantial legal barriers to participation.

“U.S. law is nowhere near authorizing those investments. I mean, it's just not even – it's not a close call,” Paner said.

Paner added that Cuba’s announcement was in reality meant to signal to the U.S. government that it is willing to play ball and negotiate a solution to the countries’ ongoing geopolitical standoff. But in order to get anywhere meaningful on the economic front, those negotiations could require U.S. actions as well.

“It's kabuki theater,” said Paner. “They're signaling to the U.S. government. They're not signaling to potential investors in Miami because they know – I know that they know – that those investments are not allowed under U.S. law.”

The U.S. restrictions on doing business in Cuba pertain to any currency transactions that involve the U.S. dollar, leaving room for investment by those using other currencies. This includes the Euro, which is being used by a growing population of expatriate Cubans in Spain.

“If Cubans living in Spain want to invest in Cuba, then there is no [Office of Foreign Assets Control] jurisdictional hook, then they could do that,” said Paner. “OFAC can kind of play in the margins of the existing dollar prohibitions, but they cannot get rid of the prohibitions.”

A potential way to get around the U.S. side of the economic sanctions would be for President Trump to declare that a “transitional” government is in place on the island to ease the restrictions.

“The word ‘transition government’ is an important thing. It’s not that the government is suddenly pro-democracy or whatever. It’s a new government,” said Paner. “If the [Cuban] government puts in the grand nephew as the new leader, or someone that has a familiar relation to Castro, that’s the same government. It’s not a transitional government.”

Another way around the restrictions would be for Congress to repeal the U.S. Embargo on Cuba to open business relations, as the sanctions on Cuba uniquely cannot be quickly changed at the discretion of the President.

“The executive branch is very limited as to what it can do,” said Paner. “Cuba remains the strictest comprehensive sanctions program that the United States has ever had. You'd think, you know, North Korea, Iran. No. It's still Cuba.”

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